Months after opening its first apartment community in Memphis,
Rael Development Corp. is under construction on a second project and eyeing more opportunities locally.
Located at 3655 Southern Ave., Gather on Southern is a 264-bed apartment project located just steps from the University of Memphis campus. It is a project of the Texas-based multifamily real estate developer primarily focused on student housing.
Rael Development currently is building a sister property for Gather on Southern. With 180 beds, the second apartment community – at 3595 Southern – will be smaller than its predecessor, but it will have many of the same amenities including a movie theater, student lounges, game room, swimming pool, fitness center and computer lab.
Rael plans to finish construction on phase two next summer and open in the fall for the 2015-16 school year.
Memphis presented a good opportunity for Rael Development and its business model, which is “to identify the best located properties in any given market and build the highest quality product in any given market,” said Graeme Rael, company principal.
“We thought there was a significant opportunity to come into Memphis and really raise the bar in terms of quality, amenities, design and management,” Rael said.
With a sleek, modern design and numerous amenities, Gather on Southern was fully leased when it opened to students this fall and has maintained its 100 percent occupancy rate.
“The demand was clearly there,” Rael said.
The boutique multifamily development firm is expanding across the country. It has projects at the University of Arkansas and University of Mississippi as well as in West Coast markets.
While Rael Development’s focus is primarily on student housing, it develops conventional multifamily as well. Rael said the company finds Memphis to be a dynamic place and is looking for more action locally.
“We’ve looked in and around Downtown for projects,” he said. “I wouldn’t be surprised if we did a few more projects in Memphis. We think it’s a great city.”
By Jane A. Donahoe
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